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TFSA Contribution Limit

Contribution to a TFSA may only be made by the Holder and the amount is not tied to the
income of the Holder.

The Holder can contribute up to $5,500 per year.

Contributions are not tax deductible.

The Holder is responsible for ensuring the maximum contribution
limit is not exceeded. An excess contribution will result in a penalty tax of 1% per month for each month that the excess contribution amount remains in the TFSA.

TFSA Unused Contribution Room

When a TFSA Holder contributes less than the maximum contribution limit, the difference is referred to as 'unused contribution room.'

Unused contribution room will accumulate each year.

Unused contribution room is carried forward indefinitely, allowing the Holder to 'catch up' by contributing more than the maximum contribution limit in a future year.

A TFSA withdrawal will increase the contribution room for the year after withdrawal. As a result, when amounts are withdrawn from a TFSA they can be re-contributed in the future when funds become available.

Canada Revenue Agency will confirm the contribution room on the annual Notice of Assessment

Withdrawals

TFSA Holder may withdraw funds at any time; withdrawals may be restricted by investment terms.

Withdrawals are not reported as taxable income and are not subject to income tax.